McDermott wins KG-D6 subsea work

McDermott International has won a letter of award from Reliance Industries for work on the KG-D6 subsea field development in the Krishna Godavari Basin offshore eastern India.

McDermott will provide engineering, procurement, installation and pre-commissioning of subsea flowlines, vent lines, and a pipeline-end manifold for connection with six subsea wells in the R-cluster field at a water depth of up to 6890ft (2100m), including in-field pipelines, Monoethylene Glycol (MEG) line, pipeline-end terminals, jumpers, risers, umbilicals system and the modification of the control riser platform to interface with the new facilities.

In addition to the R-Cluster of six subsea wells, the option for five to seven more subsea wells can be exercised by the client for an optional S-cluster package. The optional scope also consists of two additional subsea structures and flowlines at a water depth between 4593ft (1400m) and 5905ft (1800m).

The north-western boundary of the KG-D6 block is about 24-37mi (40-60km) southeast of Kakinada in 1312-7545ft (400-2300m) water depth. The KG-D6 blocks contains the R-Cluster and Satellite-Cluster discoveries, which Reliance plans to develop in phases.

In June, Reliance and BP announced they would spend $6 billion on three projects to develop the R-series deepwater natural gas resources in Block KG-D6, bringing 1 Bcf/d of dry gas production on stream between 2020-2022.

The lump sum contract award is expected to be reflected in McDermott’s Q4 2017 backlog. The contract - which McDermott values between US$250 million and $500 million - is scheduled for completion by the Q2 2020 for the base scope, and Q1 of 2021 for the optional scope.

McDermott will use its Engineering Center of Excellence office in Chennai to provide engineering and project management oversight for the project. The company also plans to use its One McDermott Way approach with support from its office in Kuala Lumpur, Malaysia, and vessels from its fleet.

McDermott also reported receiving a contract valued between $250-$500 million for the engineering, procurement, construction and installation services for an offshore Middle East redevelopment project. The project involves work to fabricate and install four wellhead topsides, a manifold platform and jacket together with associated subsea pipelines and brownfield tie-in works. The combined total weight of the structures is approximately 7000-ton (6400 metric ton) and includes 47mi (75km) of onshore and offshore pipeline and umbilicals.

This award builds on the successful delivery of four jackets in 2016 as part of an earlier phase in the redevelopment project. Fabrication work is expected to begin in Q3 2018 and offshore installation is planned to begin in Q2 2019. The contract award is expected to be reflected in McDermott’s 2017 Q4 backlog, the company said in a 1 November press statement.